As Canada’s housing market moves into 2025, the resale market is showing signs of both stability and shifting demand. While some regions are experiencing price resilience, others are seeing a slowdown in sales, driven by affordability concerns, interest rate movements, and changing buyer behavior.
Ontario, Alberta, and British Columbia—three of Canada’s most active real estate markets—are at the center of this transition, each reacting differently to economic conditions and housing supply shifts.
This article provides a region-by-region breakdown of what to expect in the resale market for 2025, focusing on price trends, buyer demand, and key factors that will shape the market in the months ahead.
Ontario: A Market Balancing Higher Prices and More Inventory
Ontario’s housing market continues to be one of the most expensive in Canada, with the average home price in the Greater Toronto Area (GTA) sitting at $1.13 million as of December 2024. Despite lower interest rates, affordability remains a significant challenge, keeping some buyers on the sidelines. Home sales in the province dropped by 19% in December, reflecting buyer hesitation in the face of rising listings and economic uncertainty.
The number of new listings in Ontario increased by 16.4% year-over-year, giving buyers more options and easing competition. This shift is particularly noticeable in Toronto’s condo market, where increased inventory has led to price declines. Condo values in the GTA dropped by 1.5% year-over-year, with the average condo selling for $741,000 in December.
Detached homes remain the most sought-after property type, with prices climbing 3.5% year-over-year to $1.46 million. However, suburban markets like Milton, Durham, and Kitchener-Waterloo are becoming increasingly attractive to buyers looking for more space at a lower cost. The demand for semi-detached homes and townhouses in these areas has remained strong, particularly among young families moving away from the city core.
Alberta: A Market Adjusting to Slower Growth
Alberta’s real estate market, particularly in Calgary and Edmonton, has been one of Canada’s strongest over the past two years. Calgary, in particular, experienced a boom in demand as buyers sought affordability and a lower cost of living compared to Ontario and British Columbia. However, the market is now showing signs of slowing down, with home sales in Calgary dropping 10% in Q4 2024.
Despite the decline in transactions, home prices remain relatively stable, with the average price in Calgary sitting at $540,000, up 2.4% year-over-year. The demand for detached homes has softened slightly, but suburban and mid-range properties remain in demand, particularly in areas like Airdrie, Okotoks, and Cochrane, where buyers can find larger homes at lower price points.
Edmonton’s market remains balanced, with modest price appreciation and a steady flow of buyers. The city’s real estate sector continues to attract first-time buyers and investors looking for properties with strong rental demand. Unlike Toronto and Vancouver, where affordability is a major issue, Edmonton’s lower home prices are keeping buyer confidence high heading into 2025.
British Columbia: A Tale of Two Markets
British Columbia’s housing market remains divided between Metro Vancouver, where affordability continues to challenge buyers, and other regions like the Fraser Valley and Vancouver Island, where demand is shifting based on lifestyle changes and affordability.
Vancouver’s housing market saw home sales decline by 12% in December 2024, but prices have remained stable, with the average home selling for $1.23 million, up 2.9% year-over-year. Limited housing supply continues to drive price stability, particularly in the detached home segment, where values rose by 3.5% year-over-year to $1.92 million.
The condo market in Vancouver, similar to Toronto, has faced downward pressure due to increased inventory. More new condo developments have entered the market, giving buyers more choices and reducing price growth. Some condo sellers have had to lower their prices or offer incentives to attract buyers, particularly for units in older buildings that face competition from newer developments.
In contrast, markets outside Metro Vancouver are seeing a different trend. The Fraser Valley and Vancouver Island continue to attract buyers looking for more affordable alternatives. Areas like Langley, Nanaimo, and Victoria are experiencing steady price appreciation, driven by demand from retirees, remote workers, and investors.
What to Expect in the Resale Market for 2025
As the housing market continues to adjust to changing economic conditions, several key factors will shape the resale market across Canada. Interest rates remain one of the biggest variables, with further rate cuts expected throughout 2025. Lower borrowing costs could bring more buyers back into the market, particularly in regions like Ontario and British Columbia, where affordability is a key issue.
Inventory levels will also play a significant role in shaping market dynamics. In cities like Toronto and Vancouver, rising supply in the condo sector could continue to pressure prices, making it a buyer’s market in certain segments. In contrast, Calgary and Edmonton, which have benefited from strong demand over the past two years, could see a more balanced market emerge, with steady but slower price appreciation.
The rental market is expected to remain strong nationwide, with rents continuing to climb in major urban centers like Toronto, Vancouver, and Calgary. This trend could encourage more investors to hold onto properties rather than sell, limiting the number of listings and preventing a major price correction.
A Market in Transition
Canada’s resale housing market in 2025 is entering a period of transition, with regional variations shaping buyer and seller behavior. Ontario’s high home prices and rising inventory are giving buyers more leverage, while Alberta’s once-booming market is stabilizing after two years of rapid growth. British Columbia remains split between Vancouver’s high-priced urban market and the growing demand in smaller cities and suburban areas.
For buyers, the current conditions provide an opportunity to explore a wider range of properties without the extreme competition of past years. For sellers, adjusting to new market realities by pricing competitively and highlighting property value will be key to securing successful transactions. Investors will need to balance short-term price fluctuations with the long-term potential of strong rental markets in key cities.
As 2025 unfolds, the Canadian housing market will continue to evolve, shaped by interest rates, inventory trends, and economic factors. Whether prices continue to rise or level off will depend on how these forces interact, making this a crucial year for buyers, sellers, and investors navigating the real estate landscape.
